Dubai Ecommerce Strategy: Empowering The E-Commerce Sector And Reshaping The Future Of Businesses
The epidemic caused e-commerce to expand exponentially and is still thriving today. Unsurprisingly, the majority of consumers began purchasing online instead of heading to physical stores. Consumers now expect quick delivery and affordable prices due to the rising trend of the e-commerce world. The trajectory of international retail has been changed in parts by ever-changing consumer habits, buying patterns, and the expansion of e-Commerce. The government assistance, together with Dubai’s central role in the world of commerce and its massive logistical networks, have helped the industry expand.
Now, retailers and businesses have been compelled to make necessary changes to remain effective and competitive because purchasing products online has become a new standard of shopping. The Middle East and North Africa have historically benefited greatly from e-commerce, with the UAE and Dubai having some of the highest penetration rates. In 2017, Amazon acquired Souq for $580 million, making it one of the largest startup exits in the UAE. In 2019, Dubai’s Crown Prince unveiled the e-Commerce strategy for Dubai.
Dubai Ecommerce Strategy: The Strategic Initiatives
Dubai hopes to firmly establish itself as a worldwide e-commerce center by implementing this approach. With the Dubai Ecommerce Strategy, Dubai intends to become the top logistics hub in the region, expecting e-commerce to contribute more than AED12 billion to the regional GDP by 2023. Emirates will be able to secure massive foreign direct investments in the online business industry. Another strategic ambition of this strategy is to cut back on the paperwork and expenses needed for customs clearance associated with moving products across free zones. The overall cost of e-Commerce will be reduced by 20% as a result.
By 2025, UAE Envisions Having An $8 Billion E-Commerce Market
According to a new estimate from EZDubai in collaboration with Euromonitor International, the total value of UAE e-commerce is expected to reach $8 billion by 2025. In 2021, the market value exceeded more than $5 billion. Findings from the survey show that customers in the UAE bought more things online than they did offline. 75% of survey participants are more likely to make internet purchases in 2021 compared to the previous year. Kitchenware, home appliances, decor, food and beverages, and media items will have immense industry-wide growth between 2021 and 2025. Middle Eastern nations, with their high GDP growth and widespread internet use, are well-positioned to support continued e-commerce expansion.
Efforts Are Being Made In The UAE To Promote E-business
EZDubai previously confirmed the building of four additional facilities totaling 270,000 square feet. With top-notch logistics, EZDubai is an all-inclusive e-Commerce platform. Its infrastructure facilitates local, regional, and international B2B and B2C fulfillment. To promote the Dubai eCommerce Strategy and establish Dubai as a center for global e-commerce, EZDubai was established. Among the top nations, the UAE and Qatar rank high in terms of GDP per capita and internet penetration, with each exceeding $40,000 per capita, making them more competitive in the e-commerce industry.